University City office rent prices have risen by 18% over the last two years, partially due to the city's ascendant life sciences and technology sector.
Per the CBRE Group’s 2022 ranking of the top 30 tech markets in the United States and Canada, University City rent experienced the highest growth levels among recognized cities, though the resultant prices remain considerably lower than existing hubs such as Vancouver and Boston. Tech companies — attracted by the area’s elite academic institutions and highly educated workforce — have recently flocked to University City, reducing office space vacancy and increasing local office rent prices.
The area’s life science development and associated economic potential have prompted attention from the federal government. This past October, Pennsylvania Sen. Bob Casey (D-Pa.) accompanied U.S. Secretary of Health and Human Services Xavier Becerra, on a tour of Spark Therapeutics’ labs located on 37th and Market streets. Spark Therapeutics has joined a growing field of gene and cell therapy developers in the neighborhood, featuring the likes of Amicus and Century Therapeutics.
Plans are currently in the works for further developments in the University City area.
Nearby Penn's campus on 34th Street and Grays Ferry Avenue, the University plans to erect the $365 million “Pennovation Works” biomanufacturing center in collaboration with Longfellow Real Estate Partners. Likewise, Drexel University’s real estate development partner Wexford Science + Technology announced this past October plans for a 225,000-square-foot, 13-story lab and office space at 39th and Market streets in addition to an even taller lab and mixed-use space one block lower on 38th Street.
In February, Sterling Bay, Harrison Street, and Botanic Properties formed a joint venture to purchase land at 38th and Chestnut streets for future lab space. Upon construction in 2025, a 13-floor, 310,000-square-foot high-rise office building will occupy the corner.
With a 6.3% increase in tech jobs between 2020 and 2021 in Philadelphia, the increase in rent shows little sign of letting up.
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